Why Vietnam could be a good bet for Spanish tanners
22/04/2016
It predicts growth of between 15% and 20% for the Vietnamese footwear and leathergoods manufacturing sector in 2016 and points out that only 30% of the leather these companies use is tanned in Vietnam. However, most of the leather Vietnamese manufacturers import comes from India or China at the moment, with very little coming from Europe.
“Although Vietnam seems an attractive market at first glance,” the report says, “there are various questions to consider for companies that want to succeed there.” The first of these centres on lead times, with ICEX suggesting Spanish tanners will need to be prepared to deliver finished leather to Vietnam in five-seven weeks from receiving an order. Secondly, Spanish tanners will need to offer higher-quality leather than Vietnamese customers can source from either India or China.
ICEX recommends that tanners in Spain aim to convince finished product brands that they can gain a commercial advantage from sourcing higher-quality leather, rather than focus sales efforts on contract manufacturers in Vietnam. Another option, though, would be for Spanish leather producers to open tanneries in Vietnam as a means of supplying the country’s 800 footwear manufacturers.
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